N※N

Manchester Offers Lessons for UK Economic Resilience

68

  //business-finance.news-articles.net/content/202 .. r-offers-lessons-for-uk-economic-resilience.html
  Published in Business and Finance on Friday, January 2nd 2026 at 12:57 GMT by London Evening Standard

• 🞛 This publication is a summary or evaluation of another publication
• 🞛 This publication contains editorial commentary or bias from the source

Manchester's Economic Resilience Offers Lessons for Westminster Amidst Crisis – But Challenges Remain

Manchester is increasingly being viewed as a potential model for navigating the current economic turbulence facing the UK, with MPs and business leaders drawing lessons from the city’s relative resilience and proactive approach to challenges like rising inflation and regional inequality. A recent report in The Times, highlighted by the Standard newspaper, underscores this growing recognition, showcasing how Manchester's unique blend of public-private partnerships, a focus on skills development, and a diversified economy are contributing to its stronger performance compared to many other parts of the country.

The article centers around a visit by MPs from the Levelling Up, Housing and Communities Select Committee to Manchester earlier this month. The purpose was to examine how the city has responded to economic shocks, particularly in light of the cost-of-living crisis and the ongoing fallout from Brexit. What they found was a city that, while not immune to national pressures, is demonstrating a remarkable capacity for adaptation and growth.

A Diversified Economy & Proactive Leadership:

Unlike many regions heavily reliant on specific industries, Manchester boasts a more diversified economy. While historically rooted in textiles and manufacturing, the city has successfully transitioned into sectors like digital technology, media, healthcare, and professional services. This diversification acts as a buffer against downturns in any single industry. The article points to the burgeoning tech scene, often referred to as "Silicon Corridor," stretching from Manchester to Liverpool, as a key driver of growth. The presence of major universities – including the University of Manchester and Manchester Metropolitan University – fuels this innovation ecosystem by providing skilled graduates and fostering research and development.

Crucially, Manchester’s leadership has been proactive in addressing challenges. The Greater Manchester Combined Authority (GMCA), led by Mayor Andy Burnham, plays a significant role in coordinating regional policy and attracting investment. Burnham's vocal advocacy for the region's needs – often challenging central government policies – has also garnered attention and arguably helped to secure resources and influence decision-making. The GMCA’s focus on devolution, giving greater control over local matters to the city-region, is seen as a vital element in its success. As detailed in The Times article, Burnham's willingness to publicly challenge government policy, particularly regarding funding for public services, has been instrumental in securing concessions and highlighting regional disparities.

Lessons for Westminster: Skills, Investment & Devolution:

The MPs on the committee identified several key takeaways from their Manchester visit that could inform national policy. Firstly, the importance of investing in skills development was repeatedly emphasized. Manchester’s focus on apprenticeships and retraining programs is helping to equip residents with the skills needed for emerging industries. This aligns with broader efforts across the UK to address skill shortages and improve productivity – a point highlighted by the government's own Levelling Up agenda (though critics argue its implementation has been lacking).

Secondly, the success of public-private partnerships in Manchester demonstrates the potential for collaborative approaches to economic development. The article cites examples such as the regeneration of Ancoats and Salford Quays, which involved significant investment from both the public and private sectors. These projects have transformed previously derelict areas into thriving commercial and residential hubs.

Finally, the committee members expressed support for further devolution of powers to local authorities. The GMCA’s experience suggests that greater regional autonomy can lead to more effective policy responses tailored to specific local needs. This echoes a long-standing debate about the balance of power between Westminster and the regions, with proponents arguing that decentralization fosters innovation and accountability.

Challenges Remain: Inequality & Dependence on Government Funding:

Despite its relative success, Manchester faces significant challenges. The article acknowledges that regional inequalities persist within the city itself. While certain areas have experienced rapid growth, others continue to struggle with poverty and unemployment. Addressing these disparities requires targeted interventions and a commitment to inclusive growth.

Furthermore, Manchester remains heavily reliant on government funding for many of its key initiatives. While the GMCA has been successful in attracting private investment, it still depends on central government grants to support essential public services and infrastructure projects. The article highlights concerns that cuts to government spending could undermine Manchester’s progress and exacerbate regional inequalities. The ongoing debate surrounding HS2, a high-speed rail project intended to connect Manchester with London and the Midlands, exemplifies this tension – delays and potential downgrades threaten to impact investment and connectivity in the region.

Beyond Manchester: A Wider Regional Perspective:

The article also touches upon the broader context of regional economic performance across the UK. While Manchester is often cited as a success story, other cities and regions face more acute challenges. The North-South divide remains a persistent issue, with London and the South East continuing to dominate the national economy. The lessons learned from Manchester’s experience could potentially be applied elsewhere, but it's crucial to recognize that each region has its own unique circumstances and requires tailored solutions.

In conclusion, Manchester offers valuable insights for policymakers grappling with the economic challenges facing the UK. Its diversified economy, proactive leadership, focus on skills development, and commitment to devolution are contributing to its relative resilience. However, addressing persistent inequalities and reducing dependence on government funding remain crucial priorities for ensuring long-term sustainable growth. The MPs’ visit underscores a growing recognition that solutions to national problems may often lie in embracing regional strengths and empowering local communities.

I hope this article provides a comprehensive summary of the Standard newspaper's report. Let me know if you would like any adjustments or further elaboration on specific points!